Bertelsmann’s BMG Direct is buying the Columbia House Company from the Blackstone Group.
The transaction’s details have not yet been disclosed, but the deal is subject to certain government approvals and other customary conditions.
Ewald Walgenbach, CEO of DirectGroup Bertelsmann said, “Today is an important and exciting day for both companies and this transaction is consistent with DirectGroup’s commitment to grow our worldwide businesses. We are bringing together two of the U.S.’s most respected and knowledgeable direct marketing media companies. The combined BMG Direct and Columbia House entity will offer a broader selection of products to a larger customer base, while at the same time creating cost efficiencies.” BMG Direct CEO, Stuart Goldfarb, will become President and CEO of the newly acquired company.
Goldfarb said, “These two great brands share a focus on their customers, their employees and their products. Columbia House is the market leader in the DVD business; this transaction provides great opportunities for us and for our customers, who now will be able to access a broad selection both of music and DVD titles with the same level of customer satisfaction they’ve come to know and expect. ”
BMG Direct is the largest direct to consumer retailer of recorded music in the U.S. and Columbia House is the largest specialized retailer of DVDs.
Scott Flanders, Chairman and CEO of The Columbia House Company said, “We are proud of the fact that Columbia House’s continued success has led to the joining of these two great brands. The pairing of BMG Direct and Columbia House will create a world class experience for our members. We very much look forward to working with Stuart Goldfarb and his team.”
According to a press release, the Blackstone Group served as financial advisor to Columbia House and Simpson Thacher & Bartlett LLP provided Columbia House with legal counsel.
Chris is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
